24 July 2024
AEW UK REIT
plc
Sale of freehold multi-let
industrial estate near Droitwich
AEW UK REIT plc (LSE:
AEWU) ("AEWU" or the "Company") is pleased to announce that it has
completed the sale of Oak Park Industrial Estate, Droitwich
for £6,300,000 reflecting a net initial yield of 7.95% and a
capital value of £33 per sq. ft. A sale at this price represents a
circa 33% premium to the 31 March 2024 valuation. Following the
completion of three new lettings, which added £272,000 of annual
rental income, the property is now fully let. With impending
capital expenditure on refurbishment, we believe we have maximised
value of the asset in the medium term.
The industrial estate was bought in
December 2015 for £5,625,000, reflecting a 10.4% net initial yield
and a capital value of £30 per sq. ft. The estate was originally
single let to Egbert H Taylor & Co Limited (trading as Taylor
Bins), a strong tenant covenant with a WAULT to expiry of
approximately seven years. The tenant has since downsized on the
estate.
Commenting on the sale, Henry Butt of AEW UK REIT
said: "Following a competitive
marketing process, we are pleased to have sold this asset at a
healthy 33% premium to March's valuation, having completed the
asset management strategy, thereby maximising value in the medium
term. The Company's capital deployment focus continues to be on
reinvesting into the existing portfolio where capital expenditure
will enable future performance gains."
ENDS
AEW UK
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Henry Butt
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henry.butt@eu.aew.com
+44(0) 20 7016 4869
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AEW Investor Relations
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investor_relations@eu.aew.com
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Company Secretary
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Link Company Matters
Limited
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aewu.cosec@linkgroup.co.uk
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TB
Cardew
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AEW@tbcardew.com
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Tania Wild
Henry Crane
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+44 (0) 7425 536 903
+44 (0) 7918 207 157
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Panmure Liberum
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Darren Vickers
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+44 (0) 20 3100 2222
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Notes to Editors
About AEW UK REIT
AEW UK REIT plc (LSE:
AEWU) aims to deliver an attractive total return to shareholders by
investing predominantly in smaller commercial properties (typically
less than £15 million), on shorter occupational leases in
strong commercial locations across the United Kingdom. The
Company is currently invested in office, retail, industrial and
leisure assets, with a focus on active asset management,
repositioning the properties and improving the quality of income
streams. AEWU is currently paying an annualised dividend of
8p per share.
The Company was listed on the
Official List of the Financial Conduct Authority and admitted to
trading on the Main Market of the London Stock Exchange on 12 May
2015. www.aewukreit.com
LEI: 21380073LDXHV2LP5K50
About AEW
AEW is one of the world's largest
real estate asset managers, with €78.8bn of assets under management
as at 31 March 2024. AEW has over 920 employees, with its main
offices located in Boston, London, Paris and Singapore and offers a
wide range of real estate investment products including comingled
funds, separate accounts and securities mandates across the full
spectrum of investment strategies. AEW represents the real estate
asset management platform of Natixis Investment Managers, one of
the largest asset managers in the world.
As at 31 March 2024, AEW managed
€37.2bn of real estate assets in Europe on behalf of a number of
strategies and separate accounts. AEW has over 515 employees based
in 11 offices across Europe and has a long track record of
implementing core, value-add and opportunistic investment
strategies on behalf of its clients. In the last five years, AEW
has invested and divested a total volume of €18.5bn of real estate
across European markets.
www.aew.com
AEW UK Investment Management LLP is
the Investment Manager. AEW is a group of companies which
includes AEW Europe SA and its subsidiaries as well as affiliated
company AEW Capital Management, L.P. in North America and its
subsidiaries. AEW Europe SA, together with its subsidiaries AEW UK
Investment Management LLP, AEW S.à.r.l., AEW Invest GmbH and AEW
SAS, is a European real estate investment manager with headquarter
offices in Paris and London. AEW Europe SA and AEW Capital
Management, L.P. are owned by Natixis Investment Managers. Natixis
Investment Managers is an international asset management group
based in Paris, France, that is principally owned by Natixis, a
French investment banking and financial services firm. Natixis is
principally owned by BPCE, France's second largest banking
group.
Disclaimer
This communication cannot be relied
upon as the basis on which to make a decision to invest in AEWU.
This communication does not constitute an invitation or inducement
to subscribe to any particular investment. Issued by AEW UK
Investment Management LLP, 8 Bishopsgate, London, EC2N 4BQ.
Company number: OC367686 England. Authorised and regulated by the
Financial Conduct Authority.
